Business Law Quiz

Which of the following is a legal document that establishes a corporation?

• Articles of incorporation

• Breach of duty

• Confidentiality agreement

• Trademark

What is a Limited Liability Company (LLC) primarily used for?

• To protect personal assets from business liabilities

• To ensure confidentiality in business

• To register a business logo

• To prevent defamation

Which term refers to the unauthorized use of someone else's work?

• Copyright

• Fraud

• Negligence

• Tort

What is the purpose of a confidentiality agreement?

• To protect sensitive information

• To establish a corporation

• To define shareholder rights

• To register a trademark

What is a key consideration when evaluating business structure options?

• Determining the most important requirements for your business

• Choosing the most popular business structure

• Avoiding all legal documentation

• Focusing solely on marketing strategies

What is the most common form of ownership among small businesses in the United States?

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

What percentage of total businesses in the United States are sole proprietorships?

• 50%

• 73%

• 85%

• 60%

What is the most common type of small business in the United States?

• Corporation

• Partnership

• Sole proprietorship

• Limited liability company

What is one of the main advantages of a sole proprietorship?

• High start-up costs

• Complex government regulations

• Ease of getting started

• Limited control over business decisions

What is a major disadvantage of a sole proprietorship?

• Limited liability

• Shared profits

• Unlimited liability

• Complex tax filing